[vc_empty_space]Executive summary:

• Long term, buy and hold insurance investors have been rewarded by positive outperformance
  versus the broad corporate credit market and, since 2012, versus global non financial high yield.
• Despite some tightening since March 2020 wides, spreads on Insurance Bonds remain at
  attractive levels
• Insurance continues to offer a complexity premium to other credit sectors that is not justified by
  strong industry fundamentals
• Robust Solvency II capital ratios support this fundamentals view, as do predominantly
  investment grade ratings and low long term industry default rates
• Coupons are generally sustainable and are expected to continue to be paid during this period
  of COVID 19 led stress
• However, credit risks are not uniform across the sector, reinforcing the importance of extensive
  fundamental analytics

READ: Insurance bonds: Compelling value opportunity remains